Question 1

A design defect is not the sort of product defect that will support the imposition of liability on a strict product liability basis.

Accepted Answer

A) True 
 B)False

Question 2

A lien is an encumbrance on a property to satisfy or protect a claim for payment of a debt.

Accepted Answer

A) True 
 B)False

Question 3

Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks,Inc.The most important factor in determining whether an ex-press war-ranty is created is whether

Accepted Answer

A) Sari expresses to Terrific what she wants warranted. 
B) Sari's desire for the SUV becomes part of her motivation to deal. 
C) Terrific expresses to Sari what it expects of its customers. 
D) Terrific's promise becomes part of the basis of the bargain. 
A) Sari expresses to Terrific what she wants warranted. 
B) Sari's desire for the SUV becomes part of her motivation to deal. 
C) Terrific expresses to Sari what it expects of its customers. 
D) Terrific's promise becomes part of the basis of the bargain.

Question 4

Sweet Candy,Inc.,and Tasty Treats stores enter into a contract for a sale of confections.Sweet,a merchant who deals in goods of the kind sold,makes express warranties in connection with the sale.Under the UCC,at the time a contract is formed,an express warranty can be disclaimed or modified

Accepted Answer

A) byclear,conspicuous language called to the buyer's attention. 
B) by implied affirmations of fact relating to the goods. 
C) in any way that the seller sees fit for the ordinary purpose. 
D) in no way. 
A) byclear,conspicuous language called to the buyer's attention. 
B) by implied affirmations of fact relating to the goods. 
C) in any way that the seller sees fit for the ordinary purpose. 
D) in no way.

Question 5

In sales law,there is only one type of warranty of title.

Accepted Answer

A) True 
 B)False

Question 6

Paltry Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim.Paltry is most likely liable for

Accepted Answer

A) a commonly known danger. 
B) fraud. 
C) privity. 
D) puffery. 
A) a commonly known danger. 
B) fraud. 
C) privity. 
D) puffery.

Question 7

Garden Tool Company makes hedge trimmers.Troy is injured while using a Garden Tool trimmer and sues the company for product liability based on neg-ligence.To win,Troy must show that

Accepted Answer

A) Garden Tool did not use due care with respect to the trimmer. 
B) Garden Tool misrepresented a material fact regarding the trimmer. 
C) Troy was experienced in the use of trimmers. 
D) Troy was in privity of contract with Garden Tool. 
A) Garden Tool did not use due care with respect to the trimmer. 
B) Garden Tool misrepresented a material fact regarding the trimmer. 
C) Troy was experienced in the use of trimmers. 
D) Troy was in privity of contract with Garden Tool.

Question 8

Strict liability depends on privity of contract between an injured party and a seller.

Accepted Answer

A) True 
 B)False

Question 9

Merchants are not required to warrant that the goods they sell are fit for their ordinary purpose.

Accepted Answer

A) True 
 B)False

Question 10

Cutter Company makes and sells table saws,which are designed to be safe if used properly.Erin buys a Cutter saw and lends it to her neighbor Frank.To reach a toolbox on a high shelf in his garage,Frank props the saw at an angle against a cabinet and climbs onto the saw.Frank loses his footing,slips off the saw,falls on the blade,and is injured.He files a product liability suit against Cutter,on the ground of negligence.On what basis could the maker prevail?

Accepted Answer

A manufacturer or seller can prevail in

Question 11

Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber.Regional knows the purpose for which Sylvia will use the goods.Under the UCC,an implied warranty of fitness of a particular purpose arises

Accepted Answer

A) if the buyer is relying on the seller to select suitable goods. 
B) if the buyer asks for it. 
C) if the seller is a merchant who deals in goods of the kind sold. 
D) in conjunction with lease contracts,not sales contracts. 
A) if the buyer is relying on the seller to select suitable goods. 
B) if the buyer asks for it. 
C) if the seller is a merchant who deals in goods of the kind sold. 
D) in conjunction with lease contracts,not sales contracts.

Question 12

Warranties of title do not arise in most sales contracts.

Accepted Answer

A) True 
 B)False

Exam 16: Warranties and Product Liability

A design defect is not the sort of product defect that will support the imposition of liability on a strict product liability basis.

A lien is an encumbrance on a property to satisfy or protect a claim for payment of a debt.

Sari buys a new sport utility vehicle (SUV) from Terrific Cars & Trucks,Inc.The most important factor in determining whether an ex-press war-ranty is created is whether

Sweet Candy,Inc.,and Tasty Treats stores enter into a contract for a sale of confections.Sweet,a merchant who deals in goods of the kind sold,makes express warranties in connection with the sale.Under the UCC,at the time a contract is formed,an express warranty can be disclaimed or modified

In sales law,there is only one type of warranty of title.

Paltry Assembly Company makes espresso machines and sells one to Vim through a misrepresentation on the label on which Vim relies and that results in an injury to Vim.Paltry is most likely liable for

Garden Tool Company makes hedge trimmers.Troy is injured while using a Garden Tool trimmer and sues the company for product liability based on neg-ligence.To win,Troy must show that

Strict liability depends on privity of contract between an injured party and a seller.

Merchants are not required to warrant that the goods they sell are fit for their ordinary purpose.

Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber.Regional knows the purpose for which Sylvia will use the goods.Under the UCC,an implied warranty of fitness of a particular purpose arises

Warranties of title do not arise in most sales contracts.

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